NEWS OUT
RTG Ventures Plans Share Buyback Program
has announced that it will commence a strategy of public market support for RTG through a Share Buyback Program to take advantage of what the company sees as a drastic undervaluation based on published financial documentation and forward guidance. The share buyback program will commence within the next few weeks following an outreach and additional communications to the investment community as the program rolls out.
Companies use share buyback programs for many reasons, the most obvious being when their public share price is significantly undervalued. Companies also use buyback programs to make a strong, confident statement to the marketplace. At this point, RTG's management sees its languishing share price as an impediment to business development.
RTG's Media & Payment divisions are not only in vogue but are fast becoming part of everyday life. When augmented to the management, deployment and measurement of social media throughout RTG's divisions and prospective client companies, the buyback is reflective of the company's belief in its people, products and service as well as the market sector it operates.
Dominic Hawes-Fairley, CEO & President said: "Since September 2010, when we officially became an operating company, we made it clear that we were not going to engage in a typical micro-cap stock promotion. While we don't doubt that that these kind of promotions may raise share prices temporarily, we don't regard them to be beneficial for value-based investors and long-term, our research indicates that they do more damage to a company than the benefit delivered in the short term. Instead, during this period, the company initiated longer term strategies, designed to recognize the embedded value being created in RTG leading to a steady and sustainable increase in the price per share."
RTG Ventures announced its investor relations campaign on December 13, 2010 which, it explained, would use internal and external resources to extend the reach of the company's communication to reach new investors. At the heart of the campaign was a social media strategy devised by digital marketing guru Reggie James, managing director of RTG's leading-edge consultancy, Digital Clarity. All activity has now been taken in-house and placed directly under the control of James.
Commenting on the campaign, James said: "A strong foundation is now in place establishing a communication strategy that uses social media to reach out to new investors. As stated when the strategy was being discussed in December 2010, it's not a quick fix, it will take time. It's also important to point out that social media is not a panacea. We have to do other things in order to reach our stakeholders, including new shareholders and the reason we've taken control of the whole process is in order to achieve the goal of increasing return on investment.
"In the past, the company has only utilized the news wires to distribute news from the company to its stakeholders. This gives the company a very narrow focus and prevents some of the deeper issues being articulated, because the news wires are primarily about hard news. Sometimes, there's a real need to issue softer news pieces and sometimes there's a need to add detail to news stories in order for the whole communication to make sense. For this reason, we will be releasing softer news on the company website, detail behind the news on blogs and reserving the news wires for more significant announcements. Social media tools will be used to syndicate all forms of news and in this manner we aim to be able to present a more rounded picture of the company."
Hawes-Fairley summarized by saying: "We have reached a point when the share price is becoming an impediment to business so action is required right now. The management of RTG now believes that it can deliver more value to shareholders by initiating a buyback program demonstrating confidence in the business plan, the executive team, the disruptive technologies and the ability of the company to deliver and grow its return on investment.
"While RTG will continue to reach out to investors and investment groups on both sides of the Atlantic, we want to send a very clear message to the market that this is a Company that has a very bright future. We are undervalued at present, but we intend to change that situation starting in the short term to set the stage for the long term growth anticipated."
ABOUT RTG VENTURES, INC.
RTG Ventures, Inc. is a NASDAQ-listed company (Pinksheets:RTGV - News) offering a turnkey media monetization solution to rights owners of music video content. At the heart of RTGV's total product offering is a Monetization Platform which allows rights owners to define and tag media content in detail, set and enforce rights management and distribution rules, receive payment on distribution and obtain detailed analytics in real time.
RTG Ventures is organized as three divisions: RTG Media, RTG Payments and RTG Solutions, each of which contains both wholly-owned companies and joint ventures with independent business plans, strategies and management. In addition to servicing their discrete markets, these companies all contribute to RTG Ventures' total product offering for media rights owners. For further information, see
RTG Ventures.
SAFE HARBOR PROVISIONS
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in RTGV's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.
